What actions related to Body20's Intellectual Property are prohibited for franchisees and their owners?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee or its Owners have on their computer systems, e-mail accounts, or other digital storage systems or services copies of the Proprietary Information, any proprietary software, and/or Other Materials, they must immediately erase these copies.
Franchisor must provide us with a certification attesting to the fact that all copies of the Proprietary Information, proprietary software, and Other Materials in Franchisor's control or the control of its officers, directors, Owners, employees, agents, and representatives have been returned or destroyed in accordance with this Section. The Franchisee Parties may not use any Proprietary Information or sell, trade, or otherwise profit in any way from any Proprietary Information at any time following the expiration or termination of this Agreement.
15.5 Cease Identification with Us. You must immediately take, and cause the Franchisee Parties to take, all action required (i) to cancel all assumed name or equivalent registrations relating to your use of the Marks and (ii) to, in accordance with our directions, cancel or transfer to us or our designee all authorized and unauthorized domain names, social media accounts, telephone numbers, post office boxes, and classified and other directory listings relating to, or used in connection with, the Studio or the Marks (collectively, "Identifiers"). You acknowledge that as between any of the Franchisee Parties and us and our Affiliates, we and our Affiliates have the sole rights to and interest in all Identifiers. If you fail to comply with this Section 15.5, you hereby authorize us and irrevocably appoint us or our designee as your attorney-in-fact to direct the telephone company, postal service, registrar, Internet Service Provider, and all listing agencies or providers to transfer such Identifiers to us. The telephone company, the postal service, registrars, Internet Service Providers listing agencies, and other providers may accept such direction by us pursuant to this Agreement as conclusive evidence of our exclusive rights in such Identifiers and our authority to direct their transfer.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, franchisees and their owners face specific restrictions regarding the use and handling of proprietary information, software, and other materials related to the Body20 system. Upon the expiration or termination of the Franchise Agreement, franchisees and their owners are required to immediately erase any copies of proprietary information, proprietary software, and other materials from their computer systems, email accounts, or other digital storage systems. They must also provide certification that all copies have been returned or destroyed.
Furthermore, franchisees and their related parties are explicitly prohibited from using any proprietary information or engaging in activities that could generate profit from such information after the agreement's expiration or termination. This includes selling, trading, or otherwise profiting from Body20's proprietary information. Franchisees must also cease identifying themselves with Body20, which includes canceling assumed name registrations related to the use of Body20's marks and transferring all authorized and unauthorized domain names, social media accounts, telephone numbers, post office boxes, and directory listings to Body20 or its designee.
These measures are in place to protect Body20's intellectual property and maintain the integrity of the brand. Failure to comply with these requirements could result in legal action and financial penalties for the franchisee. The franchisor retains the right to take necessary actions to protect its system and marks, including entering the franchisee's premises to make modifications or remove distinctive elements of the Body20 trade dress upon termination or expiration of the agreement.